Is Philanthropy Your Job or Your Heir's?

Estate planning requires juggling a variety of decisions involving property, money, and entities. When trying to decide what happens to your valuable possessions, many will usually set aside something to loved ones while also dedicating some of their fortune to a good cause. Those interested in pursuing a philanthropic option can do so by seeking out nonprofit organizations whose missions closely align with your values. When these plans are incorporated, it is known as “planned giving.” 

The trend used to be that many philanthropists would leave behind a trust or a foundation for giving to occur after they have passed. The responsibility then falls on heirs to ensure organizations are being properly funded and your wishes are being carried out. But, this tradition has become a way of the past. Many are choosing to give actively throughout their lives rather than saving everything for later. There’s plenty of good that can come from choosing to engage in philanthropy now rather than the future but it is understandable that many considerations come into play when deciding this. ​

Pros and Cons of Giving Now and Later

Giving Now
Wanting to contribute to a nonprofit organization’s goals right away is enough to get anyone excited. Knowing that your donations are going to have an immediate effect on the organization of your choice can be a big enough reason to start giving now. You will not only get to know your money is going towards a good cause but you’ll also get to see it in action while you are still around. Organizations that receive funding now are able to work towards their goals at a quicker pace and set new goals to achieve. 

Besides the personal satisfaction of giving, there are additional benefits you can receive. For example, those with significant assets can receive annual tax benefits through exemptions.

Giving Later
A major reason some may not want to give now is that the money could be needed at any time by the donor for needs such as retirement or emergencies. Promising funds you may still need to an organization can cause stress later on and lead to insecurities which is why you may want to hold off before donating. 

Unlike giving now, however, giving later means you won’t get the opportunity to follow the organization and see how much progress they’ve made in their work. While you may know that your money is making a difference, there’s no way for you to see it materialize for yourself.